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Page added on July 3, 2013
Egypt crisis boosts oil prices
Oil prices pushed closer to $102 a barrel on Wednesday — the highest level in over a year — as embattled Egyptian President Mohammed Morsi vowed not to resign hours before a deadline to yield to the demands of millions of protesters.
Benchmark crude oil for August delivery was up $2.07 to $101.67 a barrel in electronic trading on the New York Mercantile Exchange. The contract gained $1.61, or 1.6%, to close at $99.60 on Tuesday in New York.
Egypt’s military has drawn up a plan to suspend the Islamist-backed constitution, dissolve the Islamist-dominated legislature and set up an interim administration headed by the country’s chief justice if Morsi fails to reach a solution with his opponents by the end of a Wednesday deadline, Egypt’s state news agency reported.
Morsi has rejected the ultimatum, and clashes between his supporters and opponents have steadily intensified. Well over a dozen people were killed in a single incident of fighting outside Cairo University on Tuesday night.
Egypt is not an oil producer but its control of the Suez canal, one of the world’s busiest shipping lanes which links the Mediterranean with the Red Sea, gives it a crucial role in maintaining global energy supplies.
Oil traders are also awaiting the Energy Department’s weekly report on U.S. stockpiles of crude oil on Wednesday and expect the figures to show an increase in demand. Data for the week ending June 28 is expected to show a drawdown of 3 million barrels in crude oil stocks, according to a survey of analysts by Platts.
7 Comments on "Egypt crisis boosts oil prices"
BillT on Wed, 3rd Jul 2013 2:40 pm
Up, up and away! Summer is warming up. ^_^
Plantagenet on Wed, 3rd Jul 2013 3:27 pm
Thanks to increased US oil production, the oil price spike has been moderate so far.
keith on Wed, 3rd Jul 2013 4:55 pm
I’m sure the moderate oil price spike is comforting to those people who are experiencing floods, fires, tornado’s, and intense heat waves. The majority of are species is very stupid. We built this civilization on cheap energy and the shoulders of giants.
GregT on Wed, 3rd Jul 2013 6:01 pm
Oil prices rising from $60/bbl to $100/bbl in less than 4 years should hardly be considered to be moderate.
If this trend continues, crude oil will be at $260/ bbl by 2020. It sure is a good thing that US oil production is booming, or the economy would have completely collapsed already. Tahrir square, coming to a city near you soon.
Plantagenet on Wed, 3rd Jul 2013 8:43 pm
Blaming the coup against Morsi for the oil price from $60 to $100bbl over the last 4 years is silly.
The overthrow of Morsi is only responsible for the ca. $5 increase over the last week—-and thats a moderate response in price.
BillT on Thu, 4th Jul 2013 12:08 am
Since the world, especially the West, cannot exist on $100+ oil for long, and was built on $20 oil, it’s been a fun ride, but the end is in sight and there is no second time around.
GregT on Thu, 4th Jul 2013 2:38 am
“Blaming the coup against Morsi for the oil price from $60 to $100bbl over the last 4 years is silly.”
It most certainly is.
The oil price has risen, and will continue to rise exponentially, regardless of what happens in Egypt or how much more oil equivalent the US manages to blast out of the ground. The paltry rise in oil prices over the last few days is nothing more than market sentiment and speculation. What has happened over the last 3 years, 360 days is the real trend.